“My prediction of what will happen is that there could be a meltdown in the New York tech scene,” Lenihan told CNN.”But it’s like a forest fire: It’s good, it clears out the dead wood.”

The risk of a bubble is limited to angel and venture capital investors, in contrast to the dot-com burst where startups were going public and spreading risk throughout the system.

The current bubble is dangerous for two reasons, investors said.

They “disrupt market Darwinism,” CNN says, which happens in a few ways. A bubble could mean entrepreneuers who don’t deserve funding are getting it, for example, or that companies that would have succeeded with less money might be encouraged to grow too fast and flame out.

A spectacular bubble burst could also put the freeze on tech investing for years.

That’s why investors would prefer to see some little bubbles pop–a company here or there–rather than a system-wide explosion.